Carriers & Postal Services

What Is UPS? Who Owns It and How It Works

UPS truck and parcel beneath a question about UPS.
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Anyone asking what is UPS gets the same answer: United Parcel Service, a private sector package delivery company that operates in more than 200 countries and territories. It is not part of the government and it is not the post office. It is publicly traded, so investors own it through shares of stock.

The name gets confused with other things, so this page sorts it out. You will find who runs UPS, what it sells, how a parcel actually travels, and where The UPS Store and UPS Access Point fit in. If you want the story behind the letters, the guide on what UPS stands for covers it.

What is UPS, in plain terms?

UPS began in 1907 as a bicycle messenger service funded by a $100 loan. Today it calls itself the world’s largest package delivery company.

Carol B. Tome is the chief executive. The company keeps its facts page current, and the numbers below come from it.

The scale is large. According to the company’s own facts page, UPS has about 460,000 employees. It delivers 20.8 million packages a day and reported 2025 revenue of $88.7 billion.

So what is UPS in business terms? It is a logistics and transportation company. Its core product is moving boxes.

People who search for what industry UPS is in, or what type of business it is, usually want that answer: package delivery and logistics. Shipping is the whole business, from a single parcel to a company sending thousands.

Is UPS a private company or government owned?

UPS is a private company in the sense that the government does not own or run it. It is also a public company in the stock market sense. Its shares trade on the New York Stock Exchange under the ticker UPS, which is how every UPS press release identifies the company, and its investor relations site publishes SEC filings and earnings reports like any listed company.

UPS has two share classes, Class A and Class B, and both receive the same quarterly dividend, which was $1.64 a share in the dividend declared for September 2026.

That answers several related searches at once. Is UPS federal? No.

Is UPS owned by the government? No, and it never has been a government agency.

Is UPS privately owned by one family or one person? Also no. Shareholders own it, and anyone can buy stock through a brokerage account.

The carrier run by the federal government is the U.S. Postal Service. It is a separate organization with different rules, and it competes with UPS for parcels.

If you are weighing the two for one box, the shipping cost comparison tool shows which makes sense.

What services does UPS offer in the United States?

UPS sorts its domestic services by speed. Every service on the list below accepts packages up to 150 pounds and 108 inches in length, according to the UPS domestic services page. Faster services cost more, and the page does not list prices, so use the UPS rate tool or your account for a quote.

Service Speed Where it goes Good to know
Ground 1 to 5 business days 50 states and Puerto Rico About 85% of Ground packages arrive in 3 days or less
3 Day Select 3 days 48 contiguous states Saturday delivery is an option
2nd Day Air 2 days 50 states and Puerto Rico, some limits in Alaska and Hawaii Saturday delivery is an option
Next Day Air Early Next day, earliest option 48 states and Anchorage Saturday delivery available
Next Day Air Next day All 50 states Saturday delivery available
Next Day Air Saver Next day 50 states shipping to 48 states Guaranteed by end of day, 11:59 p.m.
Worldwide Express International express Global Timing and rules depend on the country

Two other options appear on the same page. UPS Express Critical handles emergency shipments around the clock.

Same day delivery runs through Roadie with windows of two hours, four hours, or the end of the day. UPS says it reaches 97% of U.S. households.

Which services come with a guarantee?

Only some of them. The UPS Service Guarantee currently covers Next Day Air Early, Next Day Air, Next Day Air Saver and 2nd Day Air A.M. UPS states that it remains suspended for all other services.

That means plain Ground, 3 Day Select and standard 2nd Day Air are not guaranteed, even though they usually arrive on time. If a deadline is firm, the Next Day Air family is the only set of domestic services with a guaranteed delivery time right now. Refund terms sit in the UPS Tariff and Terms and Conditions of Service, and they come with conditions and exclusions.

Where to read more on each service

The air services each deserve their own page. The guide to UPS Next Day Air explains the three overnight versions and what they guarantee.

The one on UPS 2nd Day Air covers how the two days are counted and when Saturday delivery applies.

UPS also sells Simple Rate, which needs no account and charges a flat price by box size for packages up to 50 pounds. Starting prices change, so check the UPS site for the current figure. Pricing is not covered on this page.

How does UPS deliver packages?

A UPS package follows the same basic path whichever service you pick. Speed changes the vehicles and the schedule, not the idea. UPS does not publish a detailed map of its network, so the steps below describe the general flow rather than every facility.

  1. Pickup or drop off. A driver collects the package from your address, or you take it to a UPS location.
  2. Label scan. The first scan creates the tracking record and tells UPS where the parcel is going.
  3. Sorting at a hub. The package travels to a sorting facility, where it is routed toward its destination region.
  4. Line haul. Ground shipments move by truck. Air services such as 2nd Day Air and Next Day Air move by plane for part of the trip.
  5. Local center and delivery. A local facility loads the package onto a delivery truck, and the driver brings it to the door.

Each stop produces a scan, which is what you see on the tracking page. If the scans stop for a while, read why a UPS package is not moving for what to check and when to call.

How fast will it get there?

The service you choose sets the window. Ground takes 1 to 5 business days depending on distance, and the faster services follow the table above.

To estimate a date for your own route, the delivery time estimator gives a realistic range.

What is the difference between UPS, The UPS Store and UPS Access Point?

These three names are the main source of confusion. They are related, but they do different jobs.

Name What it is Who runs it
UPS The carrier that moves and delivers packages United Parcel Service, a public company
The UPS Store A retail shipping, packing, printing and mailbox store Mostly independent franchise owners, under The UPS Store, Inc., a UPS company
UPS Access Point A local spot such as a shop where you can drop off or pick up a package Partner businesses working with UPS

The UPS Store, Inc. says its locations in the United States are independently owned and operated by franchisees. One or more may be company owned.

Its corporate headquarters is in San Diego, California.

Staff at a franchised store work for the franchisee, not for The UPS Store, Inc. Products, services, prices and hours can vary by location.

That has a practical effect. A UPS Store is not a UPS facility, so hours differ from store to store. Check with the store itself, or read the guide on when the UPS Store closes.

An Access Point is simpler. It is a convenience location that holds packages or accepts drop offs, and it has its own ID and pickup rules. The page on what a UPS Access Point is walks through them.

UPS My Choice, covered next, can send a package there.

What is UPS My Choice?

My Choice is the free account UPS offers to people who receive packages. It lets you follow incoming deliveries and manage them from one dashboard. UPS describes the main features on its My Choice page.

  • Delivery alerts and proof of delivery photos
  • Estimated delivery times
  • Rescheduling a delivery to another date
  • Redirecting a package to a different address or a UPS Access Point
  • Delivery instructions, such as leaving a package with a neighbor

Basic membership is free.

Premium was listed at $19.99 a year, with unlimited delivery changes included. On Basic, UPS charged per request, such as $9.99 to reschedule and $14.99 to redirect to another address, and $5.99 to redirect to an Access Point. Those figures can change, so confirm them on the UPS page before you pay.

How do you choose the right UPS service?

Start with the deadline, not the price. The table below matches common situations to the services described above.

Your situation Service to look at Why
No rush, ordinary package Ground Covers 50 states and Puerto Rico, 85% arrive in 3 days or less
Need it within three days 3 Day Select Fixed three day window to the 48 contiguous states
Need it in two days 2nd Day Air Two day window, with Saturday option
Deadline is firm Next Day Air family Time definite and covered by the Service Guarantee
Delivering to Alaska or Hawaii Next Day Air or Ground 2nd Day Air has limits in those states, and Next Day Air standard covers all 50 states
Emergency or same day need Express Critical or same day Built for urgent shipments

One caution applies to any air service. The delivery time depends on the address type and the service, and UPS changes these details from time to time. Read the time shown at checkout before you pay.

How is UPS different from USPS?

UPS is a company, and USPS is a federal agency. They move similar packages, but they differ in who runs them and how you reach them.

Question UPS USPS
Who runs it United Parcel Service, a public company The federal government
Where you drop off UPS Store, Access Point or UPS location Post office or collection box
Delivery to your home UPS drivers Letter carriers
Max size on the main domestic services 150 lb and 108 in Set by each USPS service

You cannot hand a UPS Ground label to the post office and expect it to travel as UPS. A package moves on the carrier that sold the label.

If you are comparing, use the cost tool and the delivery time tool together.

How do you ship a package with UPS?

The process is short, and every step has a purpose. The steps below are the general path for an online shipment.

  1. Weigh and measure. Know the weight and the length, width and height before you quote.
  2. Pick a service. Use the deadline to choose from the table above.
  3. Create the label. Make the label in your UPS account or at a UPS Store.
  4. Hand it over. Give the package to a driver or take it to a drop off location.
  5. Track it. Follow the scans and use My Choice for alerts.

Packaging matters as much as the label. A sturdy box, tape on all seams and cushioning around the item prevent most damage claims.

When should you use The UPS Store instead of a UPS account?

Use a UPS account or My Choice when you already have a packed box with a label. The driver can collect it, or you can leave it at a drop off point. That route is usually the fastest for repeat shippers.

Use The UPS Store when you need help. Franchise locations can pack an item, print documents and sell you a box. Because each store is independently owned, services and prices differ from one location to the next.

The same rule applies to receiving. If you cannot be home, My Choice can redirect a package to an Access Point, and the fee is lower than a full address change.

What should you check before you ship?

A few details prevent most problems. Confirm the destination fits the service, since 3 Day Select serves only the 48 contiguous states and 2nd Day Air has limits in Alaska and Hawaii.

Check the size next. Domestic services accept up to 150 pounds and 108 inches in length. Simple Rate stops at 50 pounds.

Finally, choose the delivery option that matches the address. A Saturday option exists on several services, but it is not available on all of them. Read the option at checkout before you confirm.

Does UPS deliver on holidays and weekends?

Standard Ground service runs on business days. Saturday delivery is an option for 3 Day Select, 2nd Day Air, and Next Day Air Early and standard, as the table shows. Sunday delivery is not part of the domestic service list on the UPS page.

Holidays are a different question because UPS changes its schedule around them. The guide on whether UPS delivers on Christmas covers what actually happens, and a separate page explains UPS daily hours.

Bottom line on UPS

UPS is a large, publicly traded delivery company, not a government agency and not a branch of the postal system.

It sells a ladder of services from Ground to Next Day Air, and only the overnight tier plus 2nd Day Air A.M. carries a guarantee at the moment.

The UPS Store is a separate franchise retail chain run by independent owners, and an Access Point is a local pickup and drop off spot.

If you only remember one thing, remember this: pick the service by deadline, then compare cost. That check takes less than a minute and can save real money.

About the author

Joseph Ashburn — writes about USPS, UPS, FedEx, and DHL for Postal Guidance, covering delivery times, tracking statuses, postage and stamps, and the practical rules of sending mail and packages. He focuses on turning confusing postal policies into clear, accurate answers you can actually use.

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Postal Guidance is an independent resource. We are not affiliated with, endorsed by, or acting on behalf of USPS, FedEx, UPS, DHL or any other carrier. All carrier names and trademarks are the property of their respective owners. Contact details we publish are sourced from official carrier websites — always verify them there before sharing personal or payment information.